OTCQX:HEOFF - Post by User
Post by
Possibleidiot01on Feb 14, 2023 9:44am
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Post# 35284945
Q2
Q2Overall the headline results sound impressive - 27% organic growth , revenue growth of 52% but then we get to the gross profit - 26.6% vs 26.4%.
The whole situation reads like Groundhog Day IMO despite the headlines.
The key part of the release is
"Despite the increase in SG&A expenses, the percentage of expenses over revenues for the three and six-month periods decreased respectively by 0.4% and 1,3%, showing the scalability of the Corporation’s business model as revenues continue to grow. Investments made in sales and business development are paying off since revenues are growing faster than the SG&A ratio."
Maybe costs are gradually getting under control and "the measures taken to mitigate price increases in raw materials and rapid inflation in wages are starting to reflect positively on our gross profit margins."